What Should a Skill Remember? Quality-Cost Trade-offs in Cost-Aware Skill Rewriting for Language Model Agents

Abstract: LLM agents increasingly rely on skills: reusable procedural documents encoding workflows, tool use, implementation patterns, validation checks, and domain rules. Skill rewriting is often treated as prompt compression, but shorter skills can make agents more expensive by removing sparse operational anchors that prevent exploration, debugging, and recovery. We study skill rewriting through this economic lens. Our controlled framework profiles skill structure, rewrites skills using information-preservation strategies, and evaluates the rewrites under fixed task instructions, environments, and verifiers. Experiments on SkillsBench reveal distinct quality--cost trade-offs across strategies: API/code anchoring, workflow guarding, and rule/formula anchoring benefit different task families, with no universally dominant template. In the main held-out evaluation, the learned policy reduces total cost by 7.0\% and downstream agent-token cost by 6.0\%; in frozen cross-model transfer, the corresponding reductions average 14.7\% and 13.7\%, while verifier quality is preserved. These results position skill design as cost-aware operational knowledge engineering rather than prompt compression. Resources: \href{https://github.com/1Reminding/Skill_EE}{SkillEE}.